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← Backlit

2025-03-31-accounts

Company registration number: 08329205 Charity registration number: 1167258

BACKLIT LTD

(A company limited by guarantee) Annual Report and Financial Statements for the Year Ended 31 March 2025

Community Accounting Plus Units 1 & 2 North West 41 Talbot Street Nottingham NG1 5GL

BACKLIT LTD

Contents

Reference and Administrative Details 1
Trustees' Report 2 to 10
Independent Examiner's Report 11
Statement of Financial Activities 12 to 13
Balance Sheet 14
Statement of Cash Flows 15
Notes to the Financial Statements 16 to 26

BACKLIT LTD

Reference and Administrative Details

Trustees Craig Chettle
Alexander Jovcic-Sas
Susan Anderson, Treasurer
Dr Teresa Forde
Jay Harris
Roberta Beattie
Ismail Khokon
Secretary Alexander Jovcic-Sas
Senior Management Team Matthew Chesney, Director
Suzanne Golden, Director
Charity Registration Number 1167258
Company Registration Number 08329205
Registered Office Alfred House
Ashley Street
Nottingham
Nottinghamshire
NG3 1JG
Independent Examiner Eva Stevens, employee of
Community Accounting Plus
Units 1 & 2 North West
41 Talbot Street
Nottingham
NG1 5GL
Solicitors: Nelsons Solicitors
Pennine House
8 Stanford Street
Nottingham
NG1 7BQ
Bankers Santander
36 Clumber Street
Nottingham
NG1 3GB

Page 1

BACKLIT LTD

Trustees' Report

The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements of the charitable company for the year ended 31 March 2025.

Trustees and officers

The trustees and officers serving during the year and since the year end were as follows:

Trustees: Craig Chettle Alexander Jovcic-Sas Susan Anderson, Treasurer Dr Teresa Forde Jay Harris Roberta Beattie Ismail Khokon Josh Pickering (resigned 1 December 2024) Dr Isobel Elstob (resigned 4 July 2025) Laura-Jade Vaughan (resigned 1 July 2024)

Structure, governance and management

Nature of governing document

The charity is a company limited by guarantee and registered charity. It is operated under the rules of its memorandum and articles of association dated 12 December 2012 and most recently amended 12 May 2016. It has no share capital and the liability of each member in the event of winding-up is limited to £1.

Recruitment and appointment of trustees

The charity identifies the need for new trustees. This is due to vacancies that have arisen through resignations, or it may be that existing trustees have decided that one or more new trustees with specific skills are needed to help run the charity more effectively. The trustees agree what skills, experience and knowledge are needed. The senior management team write this down in the form of a short job description and person specification. The trustees agree responsibilities and a process for recruitment and ensure that the charity comply with the specific requirements set out in its governing document. The trustees consider the best methods of attracting a diverse range of candidates with the skills the charity needs. This includes advertising in the local and/or specialist press and using trustee networks. Short-listing and interviews take place against agreed criteria. Interviews are carried out by a small panel of trustees, and each candidate is asked similar questions to ensure a fair and objective approach. Notes are kept of each interview. Preferred candidates are identified and invited to join the trustees, subject to references, formal vetting and approval by the full trustee board.

Induction and training of trustees

  1. Induction and training of Trustees New Trustees receive a structured induction, which includes:

  2. information about BACKLIT’s charitable purposes, activities and strategic objectives;

  3. an overview of governance responsibilities and charity law duties;

  4. key policies, including safeguarding, financial controls, and conflicts of interest;

  5. briefings on the charity’s capital programme and property-related risks.

Ongoing training is provided as required, informed by skills audits and emerging needs, including governance updates, financial oversight, equality and diversity, and capital project governance. Trustees are encouraged to undertake external training where appropriate.

Page 2

BACKLIT LTD

Trustees' Report

Organisational structure

BACKLIT is constituted as a charitable organisation governed by its governing document and overseen by a Board of Trustees. The Trustees are collectively responsible for the strategic direction, governance and oversight of the charity.

The day-to-day management of the charity, including delivery of its capital programme, is delegated to the BACKLIT team, led by the Co-Directors. Clear reporting lines are in place between staff and Trustees to ensure accountability and effective oversight.

Decision-making processes

The Trustees are responsible for all major strategic decisions, including:

• operational delivery of programmes and activities.

Operation work is supported by written policies, financial controls, and regular reporting to the Board to the Treasurer and Trustees to ensure they retain effective oversight.

Pay and remuneration of key management personnel

Trustees set the pay and remuneration of the charity’s key management personnel. This is done in accordance with the charity’s remuneration policy and with regard to:

• the need to attract and retain appropriately skilled staff, particularly in relation to managing capital works. Trustees who set remuneration do so free from conflicts of interest and do not participate in decisions relating to their own pay.

Relationship with wider networks

BACKLIT works collaboratively within the cultural and charitable sector and maintains relationships with funders, partners and sector networks. Where BACKLIT is affiliated with or supported by wider networks, these relationships do not compromise the charity’s independence.

BACKLIT retains full control over its operating policies, governance, and decision-making, ensuring that all activities align with its charitable objectives and governing document.

Relationships with related parties and partner organisations

The charity works with a range of partner organisations in pursuit of its charitable objectives, including local authorities, funders, contractors, consultants and cultural partners involved in the delivery of its capital programme.

Any relationships with related parties, including Trustees or connected persons, are managed in accordance with the charity’s conflicts of interest policy. All such interests are declared, recorded, and appropriately managed to ensure decisions are made in the best interests of the charity.

Where applicable, transactions with related parties are disclosed in the charity’s accounts in line with statutory requirements.

Page 3

BACKLIT LTD

Trustees' Report

Objectives and activities

Objects and aims

To advance education in the fields of visual, creative and applied arts by the establishment and maintenance of an art gallery and in particular the provision of studios and galleries where art may be practised, created and exhibited and public exhibitions of art for the benefit of the public.

Objectives, strategies and activities

• To provide an accessible public programme of exhibitions, talks and events for diverse audiences. To provide a professional platform for new and emerging artists, offering associate membership and affordable studio and exhibition space (50 in total) with the offer of supporting creative skills development.

• To offer a broad range of art forms and workshops (extending to performing arts, new media, screenings) as well as a curatorial experimentation space for under/postgraduates and local practitioners.

• To expand current audiences and access to local talent, through delivery of a professional arts and learning programme of collaborations between local, national and international artists.

• Inviting artists to explore, collaborate and respond to the local heritage of NG3 and beyond via research, exhibitions and events.

• To be an arts, community and local resource for artists, audiences and hard to reach groups.

Public benefit

• To provide an accessible public programme of exhibitions, talks and events for diverse audiences.

• To work closely with the local residents and community groups of Nottingham City, and the East side areas of St Ann's and Sneinton (Creative Quarter).

• To work in partnership with the universities and cultural partners to embed public workshops, critical debate and networking, creating a legacy to programme events. This provides a wider opportunity for public debate, broadens our audiences / participants and encourages graduates to become resident studio members at BACKLIT.

• To manage a volunteer and internship programme providing vocational experience and first-hand experience in the arts field. We aim to attract a wide range of people from different backgrounds and different ages, the majority of which would not otherwise get the opportunity.

• Regional recent graduates and emerging artists make up the majority of BACKLIT’s audiences and participants, BACKLIT being a venue that offers continued learning and new experiences.

• To provide creative activities for younger people to engage with the arts.

The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.

Page 4

BACKLIT LTD

Trustees' Report

Achievements & performance

Exhibitions & Public Programme

• The Last Horror Show - A group exhibition featuring work by Gina Birch, Jonathan Baldock, Maya Deren, Matthew Chesney, John Humphreys, Nathaniel Mellors, Oliver Ventress, Kim Thompson, Elizabeth Alice Keen and Xin Chen. The show explored Black, queer and female representation in horror.

• BACKLIT Member Show - Showcasing work by 52 studio holders and associates.

• Christmas Fundraiser - A winter fundraising event supporting BACKLIT’s capital project.

Private Hire

BACKLIT partnered with and hosted a range of projects in the gallery including:

• NTU Fine Art MFA exhibition

Capital: BACKLIT

Co-directors dedicated significant time to completing the purchase of BACKLIT’s premises, Alfred House , after a successful fundraising campaign.

On 30 January 2025, BACKLIT purchased Alfred House thanks to generous support from:

Arts Council England - £480,657 Foyle Foundation - £40,000 Designated Funds - £140,000

Work will now begin to: Enhance accessibility Improve environmental efficiency Digitise the People’s Archive Create a new outdoor arts and wellbeing space

Further thanks to: Garfield Weston Foundation - £150,000 Clothworkers Foundation - £50,000 Architectural Heritage Fund - £10,000 UKSPF - £10,277 BACKLIT’s community of artists

These funds will support the Alfred House Development Fund.

Despite this major milestone, critical roof repairs are required and a new fundraising campaign will be launched to address them.

Page 5

BACKLIT LTD

Trustees' Report

Staffing & HR

BACKLIT continued working with Face2Face Consultants to support HR functions.

Board

Business Plan

BACKLIT continued to deliver its mission as an artist-led space supporting creative practitioner development and public programming. Key investments supported artists, communities and protected groups including:

Key Achievements Aligned with Strategic Priorities

Environment

• Secured funding for an eco-poetry programme with the Pending Collective and Nottingham UNESCO City of Literature.

Environmental Audit

Trustee Leads

Suzanne Golden and trustee Ismail Khokon met to discuss strategic priorities including partnership development, fundraising and advocacy.

Mental Health

Trustee Leads

Suzanne Golden and trustee Jay Harris met quarterly outside board meetings to focus on:

Page 6

BACKLIT LTD

Trustees' Report

Digital

• Developed a partnership with Nottingham City Libraries to support the Morley Threads VR game, delivering 3D scanning workshops for young people at St Ann’s Library.

Equity, Diversity & Inclusion

Neurodivergent Engagement

EDI Across the Organisation

• EDI embedded into monthly staff meetings and quarterly board meetings, focusing on recruitment, representation in studios, programming and outreach to marginalised groups.

• Worked with New Art Exchange and city partners on the Transform Leadership Programme (Black, Asian and Global Ethnic Majority leadership).

Artist Development

• Supported three artist members to successfully secure DYCP (Developing Your Creative Practice) grants.

Page 7

BACKLIT LTD

Trustees' Report

Plans for future periods

Aims and key objectives for future periods

The Trustees have reviewed the charity’s strategic priorities and confirm that BACKLIT’s future plans are focused on strengthening its long-term sustainability and increasing its capacity to deliver high-quality cultural activity. The charity’s aims remain to support artists, members, engage communities, and contribute to the cultural life of the region.

During this financial period, the charity’s principal objectives include the delivery of its capital purchase and development programme. Phase 1 of the capital investment programme will focus on access improvements and the expansion of the ground floor, enabling greater public accessibility, improved circulation, and enhanced use of the building. This phase will support a future of more inclusive engagement with audiences and participants and provide improved facilities to support artistic activity.

The capital investment programme is intended to future-proof the charity’s facilities, ensuring they are safe, accessible & inclusive, environmentally sustainable, and fit for purpose. The Trustees believe this investment will enable BACKLIT to expand its artistic programme, improve the experience of audiences and participants, and provide better working conditions for artists and staff.

Alongside the capital programme, BACKLIT will continue to deliver its core artistic and engagement activities and will seek to strengthen partnerships and diversify income streams to support long-term financial resilience.

The Trustees will regularly review progress against these plans to ensure that activities remain aligned with the charity’s charitable objectives and that resources are applied effectively.

The Trustees are confident in the charity’s future direction and believe that recent experience has reinforced the importance of investing in both organisational resilience and physical infrastructure. Delivery of BACKLIT’s artistic programme and engagement activity has highlighted limitations in the existing building in terms of accessibility, capacity and flexibility, which has informed the Trustees’ decision to prioritise capital investment.

Lessons learned from past and current activity, including increased demand for inclusive access, audience engagement, and the operational pressures associated with delivering a capital project alongside core programming, have directly shaped the charity’s future plans. In response, the Trustees have determined that Phase 1 of the capital investment programme should focus on access improvements and the expansion of the ground floor, ensuring the building better supports the charity’s charitable objectives.

The Trustees have also reflected on experience gained through managing public funding and responding to Arts Council England feedback, particularly in relation to organisational capacity and risk. As a result, income generation has been identified as a key strategic priority within the charity’s NPO sustainability planning. This includes the development of private hires, strengthened partnerships, and targeted fundraising to support core staff roles, with the aim of increasing organisational capacity and mitigating delivery risks associated with both the capital programme and ongoing activity.

Looking ahead, the Trustees will continue to take a proactive, Board-led approach to risk management, regularly reviewing capacity, financial resilience and delivery against plans. Learning from evaluation, stakeholder feedback and risk monitoring will inform decisions about the allocation of resources to ensure they are used to best effect and remain aligned with the charity’s charitable purposes and Arts Council England expectations.

Page 8

BACKLIT LTD

Trustees' Report

Financial review

Year ending 31 March 2025 shows a significant spike in income with total income at £908,620. It is very important to note that £696,264 has been used to purchase Alfred House or restricted to invest in the property after its purchase. This development is indicated by significant changes to the balance sheet. Alfred House is held as a Tangible Fixed Asset which will not be depreciated nor will it be revalued. As the lease has ended, the lease improvements class has been eliminated.

Once capital income is deducted, operational income this year is £212,356, 13% lower than the prior year (£243,612). The decrease marks the end to higher rates of MGETR resulting in a £19,277 fall in income, this was anticipated and planned for. It is also in part the result of uncertainty about when the purchase of Alfred House would complete making it difficult to commit to income generating activity. Backlit remains in a strong position, our percentage of self-generating income is 60%.

Our expenditure overall has fallen, this is as a result of premises costs falling by 11%, a result of paying no rent or service charges in the last quarter of the year. Other costs rose reflecting that this was the first year post pandemic where BACKLIT returned to normal with increased travel to develop staff and build partnerships and working together in the building. Whilst the exhibition programme was curtailed as a result of uncertainty surrounding he purchase a great deal of work was delivered by staff behind the scenes to continue to invest in relationships with the local community, connecting our studio holders with each other and strengthening strategic partnerships in the region.

We anticipate that the premises costs will rise in the next financial year as we tackle the condition of Alfred House through regular maintenance and completing Phase 1 of our capital programme in partnership with Allan Joyce Architects and using the £243,906 development fund restricted on the Balance Sheet.

Policy on reserves

BACKLIT set a target in 2019 to establish a modest financial reserve of unrestricted funds equivalent to three months’ total expenditure. This money is set aside in order to cater for contingencies. The treasurer and trustees will regularly review the level of reserves as part of their finance discussion at board meetings, ensuring that current financial circumstances and any other relevant factors are taken into account. BACKLIT is committed to continually raising funds in order to maintain the agreed level of reserves namely BACKLIT's policy to have unrestricted funds to support 3 months' operating costs.

Our remaining reserves are split £243,906 restricted which represents the Alfred House development fund, £661,611 designated which represents Alfred House freehold property & component, and £14,294 unrestricted funds which represents total unrestricted funds less tangible assets. Our unrestricted free reserves are below our target but will be restored when the capital project is complete and we receive the final grant instalment from Arts Council England.

Page 9

BACKLIT LTD

Trustees' Report

Statement of Responsibilities

The trustees (who are also the directors of BACKLIT LTD for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland". The report and accounts have been prepared in accordance with the provisions in the Companies Act 2006 relating to small companies.

Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including its income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that can disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Small companies provision statement

This report has been prepared in accordance with the small companies regime under the Companies Act 2006.

19/12/2025 The annual report was approved by the trustees of the charity on .................... and signed on its behalf by:

......................................... Alexander Jovcic-Sas Company secretary and trustee

Page 10

BACKLIT LTD

Independent Examiner's Report to the trustees of BACKLIT LTD ('the Company')

Independent examiner’s report to the trustees of BACKLIT LTD ('the Company')

I report to the charity trustees on my examination of the accounts of the company for the year ended 31 March 2025.

Responsibilities and basis of report

As the charity’s trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner’s statement

Since the Company's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Chartered Institute of Public Finance and Accountancy (CIPFA), which is one of the listed bodies. I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair' view which is not a matter considered as part of an independent examination; or

  4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

...................................... FanLALQ Eva Stevens, BSc, CPFA, employee of Community Accounting Plus member of the Chartered Institute of Public Finance and Accountancy (CIPFA)

Units 1 & 2 North West 41 Talbot Street Nottingham NG1 5GL

Date:............................. G)Lf 25

Page 11

BACKLIT LTD

Statement of Financial Activities for the Year Ended 31 March 2025 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

Note
Income and Endowments from:
Donations and legacies
2
Charitable activities
3
Total income
Expenditure on:
Charitable activities
5
Total expenditure
Net (expenditure)/income
Transfers between funds
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
19		 Unrestricted
£
78,033
118,134
196,167
(205,802)
(205,802)
(9,635)
451,609
441,974
234,440
676,414		 Restricted
£
-
712,453
712,453
(24,123)
(24,123)
688,330
(451,609)
236,721
7,185
243,906		 Total
2025
£
78,033
830,587
908,620
(229,925)
(229,925)
678,695
-
678,695
241,625
920,320		 Total
2024
£
5,604
238,008
243,612
(239,751)
(239,751)
3,861
-
3,861
237,764
241,625

All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for the period is shown in note 19.

The notes on pages 16 to 26 form an integral part of these financial statements. Page 12

BACKLIT LTD

Statement of Financial Activities for the Year Ended 31 March 2025 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

These are the figures for the previous accounting period and are included for comparative purposes

Note
Income and Endowments from:
Donations and legacies
2
Charitable activities
3
Total income
Expenditure on:
Charitable activities
5
Total expenditure
Net income/(expenditure)
Transfers between funds
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
19		 Unrestricted
funds
£
5,604
128,926
134,530
(121,201)
(121,201)
13,329
23,544
36,873
197,567
234,440		 Restricted
funds
£
-
109,082
109,082
(118,550)
(118,550)
(9,468)
(23,544)
(33,012)
40,197
7,185		 Total
2024
£
5,604
238,008
243,612
(239,751)
(239,751)
3,861
-
3,861
237,764
241,625

The notes on pages 16 to 26 form an integral part of these financial statements. Page 13

BACKLIT LTD (Registration number: 08329205) Balance Sheet as at 31 March 2025 2024 Note Flxed assets Tangible assets 14 662.120 26.827 Cui'i'ent Assets Debtors Casli al bank and in h￿id 15 16 63,127 22.S,94L 57.040 183,606 289,068 240,646 Ci'edltoi's: Amounts fAlllng due wlthln one yeAI' 17 1.30.8681 12.S,8481 Nel clli'i'enl ASE4ets 2.$8,200 214,798 Net Assets 920,-120 24L,62S Flliids of the chAI'lty: Resti'lcted biconie Thiiids Reslricled fluids 19 24.3.906 7,185 Ulll'esti'lcted Incoiiie fllli(Is Unrestricted fiinds 676.414 2.34.440 TotAI Thincls 19 920.-320 241.62.S For tlie fiiiaiicial year ejidiiig .3 l Marcli ?02.5 Ilie cliarily enliiled lo exeiiipiioii froiii aiidil iiiider seclion 477 ot- di¢ Coilipaiiies Acl 2006 relatiiig lo siiiall ¢oiiipaiiies. Dire¢lors' responsibilities.. Tlie iiieiiibers liave iiol reqiiired tlie cliarily lo obiain tui aiidil of ils accoiinls for the year iii qiieslion iii accordaiice willi seclioii 476. aiid Tlie direclors acknowledge Ilieir responsibililies for coniplying willi die reqiiireineiils of Ilie Acl willi respecl lo accoiiiilllig records ￿]d tlie preparalioii of accoiiiils. Tliese fiiiaiicial slateineiils liave beeii prepared iii accordaiice witli Ilie special provisioiis relaliiig io coinpanies siibjecl lo ilie sinall colnp￿IleS regime withlli Part 15 of ilie Coinpaiiies Act 2006. Tlie fiiiaiicial staleiiieiils oil pages 12 10 26 were approved by tlie Inistees, ￿]d aiitliorised for issue on /f/1212&.. aiid Si￿led oil Ilieir belialf by.. Susan Anderson Trnstee The notes on pages l 6 to 26 fonn an integral part of these financial statemeiits. Page 14

BACKLIT LTD

Statement of Cash Flows for the Year Ended 31 March 2025

Note
Cash flows from operating activities
Net cash income
Adjustments to cash flows from non-cash items
Depreciation
Working capital adjustments
Increase in debtors
15
Increase in creditors
17
Increase in deferred income
17
Net cash flows from operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
14
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at 1 April
Cash and cash equivalents at 31 March
Reconciliation of net cash flow to movement in net funds
Increase/(decrease) in cash
Net funds at 1 April 2024
Net funds at 31 March 2025		 2025
£
678,695
1,685
680,380
(6,087)
1,755
3,265
679,313
(636,978)
42,335
183,606
225,941
42,335
183,606
225,941		 2024
£
3,861
1,728
5,589
(27,700)
1,846
9,601
(10,664)
-
(10,664)
194,270
183,606
(10,664)
194,270
183,606

All of the cash flows are derived from continuing operations during the above two periods.

The notes on pages 16 to 26 form an integral part of these financial statements. Page 15

BACKLIT LTD

Notes to the Financial Statements for the Year Ended 31 March 2025

1 Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)) (issued in October 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Basis of preparation

BACKLIT LTD meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

Going concern

The financial statements have been prepared on a going concern basis.

The trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The trustees make this assessment in respect of a period of one year from the date of approval of the financial statements.

Income and endowments

Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature is recognised when the charity has entitlement to the income, it is probable that the income will be received and the amount can be measured with sufficient reliability.

Donations and legacies

Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period.

Grants receivable

Grants are recognised when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released.

Page 16

BACKLIT LTD

Notes to the Financial Statements for the Year Ended 31 March 2025

Deferred income

Deferred income represents amounts received for future periods and is released to incoming resources in the period for which, it has been received. Such income is only deferred when:

Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.

Charitable activities

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.

Taxation

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Tangible fixed assets

Individual fixed assets costing £500.00 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Amortisation

Amortisation is provided on intangible fixed assets so as to write off the cost, less any estimated residual value, over their expected useful economic life as follows:

Asset class Amortisation method and rate Digital assets 20% on cost

Depreciation and amortisation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Page 17

BACKLIT LTD

Notes to the Financial Statements for the Year Ended 31 March 2025

Asset class Depreciation method and rate Fixtures & fittings 20% reducing balance Office equipment 25% reducing balance Land & buildings - Freehold component 22 years straight line Land & buildings not depreciated The cost of land included in the balance sheet but not depreciated is £636,978.

The charity applies component accounting to freehold property where components have materially different useful lives.

Following the purchase of the freehold, leasehold improvements integral to the property were reclassified to freehold property at their carrying amounts, with no gain or loss recognised.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Fund structure

Unrestricted income funds are general funds that are available for use at the trustees' discretion in furtherance of the objectives of the charity.

Restricted income funds are those grants for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.

Pensions and other post retirement obligations

The charity operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the charity. Pension costs charges in the Statement of Financial Activities represent the contributions payable by the charity during the year.

Page 18

BACKLIT LTD

Notes to the Financial Statements for the Year Ended 31 March 2025

2 Income from donations and legacies

Donations and legacies;
Donations from companies, trusts and similar
proceeds
Grants, including capital grants;
Government grants
3
Income from charitable activities
Unrestricted
funds
General
£
Grants & donations
-
Rent & studio hire
86,902
Other income
489
Partner income
437
Events & subscriptions
2,649
Creative industry tax relief
27,657
118,134
4
Grants & donations
Arts Council
The Renewal Trust
Duncan & Toplis Foundation
Architectural Heritage Fund - capital grant
Nottingham Trent University
Garfield Weston Foundation - capital grant
UKSPF
Arts Council - capital grant
Clothworkers - capital grant
Art fund
Foyle Foundation - capital grant
Sundry donations		 Unrestricted
funds
General
£
1,653
76,380
78,033
Restricted
funds
£
703,526
-
-
8,927
-
-
712,453
Unrestricted
funds
£
76,380
500
250
-
-
-
-
-
-
-
-
903
78,033		 Total
2025
£
1,653
76,380
78,033
Total
2025
£
703,526
86,902
489
9,364
2,649
27,657
830,587
Restricted
funds
£
-
-
-
10,000
2,500
150,000
10,199
436,065
50,000
992
40,000
3,770
703,526		 Total
2024
£
5,604
-
5,604
Total
2024
£
79,540
80,906
-
28,103
2,575
46,884
238,008
Total
£
76,380
500
250
10,000
2,500
150,000
10,199
436,065
50,000
992
40,000
4,673
781,559

Page 19

BACKLIT LTD

Notes to the Financial Statements for the Year Ended 31 March 2025

5 Expenditure on charitable activities

Exhibition & event costs
Premises costs
Refurbishment costs
Communication costs
Travel
Accountancy
Consultancy
Bank charges
Depreciation
Advertising & promotion
Legal & professional fees
Office equipment, expenses & stationery
Subscriptions
Salaries, NI & pension
Freelance & work placements
Training
Interest on tax
Bad debts		 Unrestricted
General funds
£
Restricted funds
£
10,252
2,875
55,437
10,228
-
-
1,499
-
3,228
-
4,005
-
960
-
203
-
1,685
-
499
-
2,717
-
1,419
-
823
-
119,192
-
3,395
11,020
488
-
-
-
-
-
205,802
24,123		 Total
2025
£
13,127
65,665
-
1,499
3,228
4,005
960
203
1,685
499
2,717
1,419
823
119,192
14,415
488
-
-
229,925		 Total
2024
£
22,579
73,535
10,200
1,751
2,264
3,640
304
90
1,728
357
2,315
449
833
108,001
9,584
1,222
2
897
239,751

6 Net incoming/outgoing resources

Net incoming resources for the year include:

Depreciation of fixed assets

2025
£
1,685		 2024
£
1,728

Page 20

BACKLIT LTD

Notes to the Financial Statements for the Year Ended 31 March 2025

7 Staff costs

The aggregate payroll costs were as follows:

Staff costs during the year were:
Wages and salaries
Social security costs
Pension costs		 2025
£
114,276
2,865
2,051
119,192		 2024
£
104,673
1,808
1,520
108,001

The monthly average number of persons (including senior management team) employed by the charity during the year was as follows:

Average number of employees 2025
No
6		 2024
No
6

5 (2024 - 3) of the above employees participated in the Defined Contribution Pension Schemes.

Contributions to the employee pension schemes for the year totalled £2,051 (2024 - £1,520).

No employee received emoluments of more than £60,000 during the year.

The total employee benefits of the key management personnel of the charity were £57,484 (2024 - £53,470).

8 Trustees remuneration and expenses

No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.

No trustees have received any reimbursed expenses or any other benefits from the charity during the year.

9 Related party transactions

There were no related party transactions in the year.

Page 21

BACKLIT LTD

Notes to the Financial Statements for the Year Ended 31 March 2025

10 Fees payable to independent examiner

During the period, the fees payable (excluding VAT) to the charity’s independent examiner are analysed as follows:

follows:
Independent examination
Other financial services		 2025
£
1,060
978
2,038		 2024
£
1,020
2,313
3,333

11 Charity status

The charity is a company limited by guarantee and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £1 towards the assets of the charity in the event of liquidation.

12 Taxation

The charity is a registered charity and is therefore exempt from corporation taxation.

13 Intangible fixed assets

Cost
At 1 April 2024
At 31 March 2025
Amortisation
At 1 April 2024
At 31 March 2025
Net book value
At 31 March 2025
At 31 March 2024		 Digital assets
£
14,955
14,955
14,955
14,955
-
-		 Total
£
14,955
14,955
14,955
14,955
-
-

Page 22

BACKLIT LTD

Notes to the Financial Statements for the Year Ended 31 March 2025

14 Tangible fixed assets

Cost
At 1 April 2024
Additions
At 31 March 2025
Depreciation
At 1 April 2024
Charge for the year
At 31 March 2025
Net book value
At 31 March 2025
At 31 March 2024		 Land and
buildings
£
33,869
636,978
670,847
7,697
1,539
9,236
661,611
26,172		 Fixtures &
fittings
£
3,849
-
3,849
3,498
70
3,568
281
351		 Office
equipment
£
3,401
-
3,401
3,097
76
3,173
228
304		 Total
£
41,119
636,978
678,097
14,292
1,685
15,977
662,120
26,827

Included within the net book value of land and buildings above is £661,611 (2024 - £26,172) in respect of freehold land and buildings and £Nil (2024 - £Nil) in respect of leaseholds. The cost of land included in the balance sheet but not depreciated is £636,978. The freehold component net book value is £24,633 (2024: £26,172).

The charity applies component accounting to freehold property where components have materially different useful lives.

Following the purchase of the freehold, leasehold improvements integral to the property were reclassified to freehold property at their carrying amounts, with no gain or loss recognised.

15 Debtors

Trade debtors
Prepayments
Other debtors
16 Cash and cash equivalents
Cash at bank		 2025
£
684
9,786
52,657
63,127
2025
£
225,941		 2024
£
13,208
1,788
42,044
57,040
2024
£
183,606

Page 23

BACKLIT LTD

Notes to the Financial Statements for the Year Ended 31 March 2025

17 Creditors: amounts falling due within one year

17 Creditors: amounts falling due within one year
Other taxation and social security
Other creditors
Accruals
Deferred income		 2025
£
1,411
5,609
3,568
20,280
30,868		 2024
£
3,199
276
5,358
17,015
25,848

18 Analysis of net assets between funds

Unrestricted

Unrestricted
Tangible fixed assets
Current assets
Current liabilities
Total net assets
Tangible fixed assets
Current assets
Current liabilities
Total net assets		 General
£
Designated
£
509
661,611
45,162
-
(30,868)
-
14,803
661,611
Unrestricted
General
£
Designated
£
26,827
-
93,461
140,000
(25,848)
-
94,440
140,000		 Restricted
£
-
243,906
-
243,906
Restricted
£
-
7,185
-
7,185		 2025
Total funds
£
662,120
289,068
(30,868)
920,320
2024
Total funds
£
26,827
240,646
(25,848)
241,625

Page 24

BACKLIT LTD

Notes to the Financial Statements for the Year Ended 31 March 2025

19 Funds

Unrestricted funds
General
General fund
Designated
Purchase of Alfred House
Alfred House
Total unrestricted funds
Restricted funds
Pending Collective
Studio Residencies
NCC Libraries
Eco Poetry & Culture
Art fund
Alfred House capital grants
Alfred House development
Total restricted funds
Total funds		 Balance at 1
April 2024
£
94,440
140,000
-
140,000
234,440
811
1,312
3,000
2,062
-
-
-
7,185
241,625		 Incoming
resources
£
196,167
-
-
-
196,167
-
-
-
-
12,419
436,065
263,969
712,453
908,620		 Resources
expended
£
(205,802)
-
-
-
(205,802)
-
-
(1,300)
(500)
(12,260)
-
(10,063)
(24,123)
(229,925)		 Transfers
£
(70,002)
(140,000)
661,611
521,611
451,609
(811)
(1,312)
(1,700)
(1,562)
(159)
(436,065)
(10,000)
(451,609)
-		 Balance at
31 March
2025
£
14,803
-
661,611
661,611
676,414
-
-
-
-
-
-
243,906
243,906
920,320

The transfer from the Studio residencies, NCC Libraries, Pending Collective, Eco Poetry & Culture, and Art fund to the General fund reflects the release of any restrictions on the use of these funds. The transfer from the Purchase of Alfred House designated fund to Alfred House fund was towards the now completed purchase of the building.

The transfer from the Alfred House capital grants & development funds to the Alfred House represents the net book value of fixed assets, the use of which is not subject to any restriction.

The specific purposes for which the funds are to be applied are as follows:

Pending Collective - to support workshops and programming.

Studio Residencies - two studio residences were Funded by QUAD in Derby to support neurodivergent practitioner and a second place was supported by New Art Exchange to support a black, Asian, GEMA creative practitioner.

NCC Libraries - backlit works in partnership with Nottingham City Council and Nottingham City libraries to support their mission control project which incorporate three screen gaming interactive experiences within St Anns library and Broxtowe library. Funding went towards enhancing and reimagining VR Morley Threads game and supporting a public program for families a young people and how to digitise objects and build personal collections.

Page 25

BACKLIT LTD

Notes to the Financial Statements for the Year Ended 31 March 2025

Eco Poetry & Culture - a project in partnership with creative writing department at the university of nottingham led by Lila Matsumoto to explore poetry and creative writing influenced by the environment.

Art fund - towards artist fees, work placements. Alfred House - this is the net book value of the building.

Alfred House development - towards regular maintenance and completing Phase 1 of our capital programme.

These are the figures for the previous accounting period and are included for comparative purposes

Unrestricted funds
General
General fund
Designated
Purchase of Alfred House
Total unrestricted funds
Restricted
Arts Council
Peer to Peer
Pending Collective
The Asylum Project
Equality & Inclusion
NTU and UoN Creative
placement
Punk Project
Studio Residencies
NCC Libraries
Outcome
Eco Poetry & Culture
Joy of Destruction
Total restricted funds
Total funds		 Balance at 1
April 2023
£
57,567
140,000
197,567
31,567
1,525
811
4,706
-
1,588
-
-
-
-
-
-
40,197
237,764		 Incoming
resources
£
134,530
-
134,530
76,380
-
-
-
2,476
-
11,439
1,312
3,000
3,160
2,400
8,915
109,082
243,612		 Resources
expended
£
(121,201)
-
(121,201)
(82,288)
-
-
-
(10,089)
-
(9,793)
-
-
(1,342)
(338)
(14,700)
(118,550)
(239,751)		 Transfers
£
23,544
-
23,544
(25,659)
(1,525)
-
(4,706)
7,613
(1,588)
(1,646)
-
-
(1,818)
-
5,785
(23,544)
-		 Balance at
31 March
2024
£
94,440
140,000
234,440
-
-
811
-
-
-
-
1,312
3,000
-
2,062
-
7,185
241,625

Page 26